The Relocation of Silicon Valley
Silicon Valley is Disneyland for most Engineers and VCs. Six figure salaries, city living in San Francisco, and a high demand in tech jobs. Whats not to love? While working from home has become the new norm, and real estate in the Bay Area is still at an all time high, Tech CEO’s and VC Investors are thinking ahead. ‘Texit’ has become the latest topic of discussion — whereby companies and residencies are being relocated to more affordable cities during this pandemic.
Hello Silicon Hills
There have been relocation for Tech Firms and CEOs across the US to cities such as Dallas, Salt Lake City, Raleigh-Durham, and even Miami. However, Austin has become known as “Silicon Hills,” the tech hub spot interest for companies such as Tesla, HPE, Oracle, and more. Texas is a business-friendly environment with low taxes and affordable housing, so it makes sense as to why CEOs such as Elon Musk and Drew Houston are in the works of establishing residency there.
Why Austin, TX?
🚀 Business-friendly tax laws makes it all the more rewarding for companies to relocate to Austin. The corporate income tax rate in California is 8.84%, while Texas does not have a corporate income tax rate.
🧠 When it comes to diversity in the tech industry, its a façade in Silicon Valley compared to Austin. Companies intentionally show the small fraction of Women and POC they have employed to the media to appear inclusive, but when it comes to the statistics of diversity, otherwise is proven.
🏡 The affordable cost of living in Texas is definitely a breathe of fresh air for the Bay Area residents. A laid-back lifestyle, vibrant music and arts scene, and outdoor living space. Who wouldn’t want to relocate there?
💸 Remote hiring outside of affluent neighborhoods for individuals means cheaper talent for companies. Engineers residing in Austin aren’t necessarily expecting a salary as large as employees who reside in the Bay Area, so this factor benefits companies.
Silicon Valley ‘Texit’ is Happening
“There are a lot of things about this community — it’s got a great local flavor, a great music scene, it’s an outdoors city. That’s where people want to be. I think 2020 has taught us all that we have more choice when it comes to where we live.” — Laura Huffman
Texit may just about be a win-win for everyone — depending on how the situation escalates. If working remote continues, relocation to Austin for Tech Firms and CEOs will become the new way of life. 💥 Earning a six figure salary while living in a much more affordable city is financially smart. Let’s just hope that in doing so, property rent and sales don’t increase to the point where locals start struggling to maintain their way of living.
What are your thoughts on Texit?